Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Level Capacity Production Plan
Problem
o Manager T. C. Downs of Plum Engines, a producer of
lawn mowers and leaf blowers, must develop an
aggregate plan given the forecast for engine demand
shown in the table. The department has a steady
regular output capacity of 130 engines per month.
Regular output has a cost of $60 per engine. The
beginning inventory is zero engines. Overtime has a cost
of $90 per engine.
o Develop a Level capacity plan and compute the total
cost of Ending Inventory.
MONTH
1
2
3
4
6
7
8.
Forecast
120
135
140
120
125
125
140
135
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Transcribed Image Text:Level Capacity Production Plan Problem o Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a steady regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. o Develop a Level capacity plan and compute the total cost of Ending Inventory. MONTH 1 2 3 4 6 7 8. Forecast 120 135 140 120 125 125 140 135
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